Worley on a high as it beats targets

The recently listed engineering concern, Worley, shook off the impact of the rising Australian dollar and the war in Iraq by yesterday posting a full-year profit well ahead of the targets it set out in its prospectus.

Worley shares rose 15c to an all-time high of $2.77 after the company posted a net profit for the 12 months to June 30 of $25.6 million, up 42 per cent on the previous year. It was 12 per cent higher than the figure set out in its prospectus.

The company's fully franked final dividend of 5c a share is in line with prospectus forecasts, and is payable on October 13.

Investors were also heartened by the bullish outlook for the company.

Worley's chief executive John Grill said he expected some of the group's major design projects to "hit their straps more" into the second half of 2002-03.

However, the conflict in Iraq hit Worley's oil, gas and refining revenues, which make up around 75 per cent of the company's work, leaving them short of prospectus targets.

Aside from some customers in the Middle East deferring work during the war, Mr Grill also noted Worley had "trouble convincing people to move into these countries".

In all, Worley's revenues for the year rose 8.3 per cent to $474 million, but were 4.3 per cent short of prospectus targets.

The company, which generates 42 per cent of its earnings offshore, added the rise of the dollar had hurt its forecast revenues by $7.3 million.

Worley's chief executive John Grill added the company would make a more concerted move to diversify out of oil and gas, by snaring more metal processing and infrastructure work, most particularly in the areas of designing power stations, pipelines, ports and rail lines.

Worley's non-oil and gas projects include a major pipeline in Qatar and power project in Esperance, Western Australia. The company also announced it had paid $3.3 million for a half-share in a Canadian company involved in designing heavy oil and bitumen facilities, and a $1.5 million half-share in a Victorian firm involved in aluminium.

Mr Grill said the company was keen to undertake further bolt-on acquisitions.